A screw compressor of the oil flooded type, such as a twin screw compressor, provides lubrication for a shaft seal and rotors, by injecting oil in the compressor which corresponds to about 10-40% of the weight of the gas flow. It is desirable to remove as much of the oil from the oil-gas stream as possible before it exits the compressor via a discharge port, especially in refrigeration applications, as oil carried into refrigerant flow circuits reduces the efficiency of heat transfer surfaces of the refrigeration system. Thus, it would be desirable, and it is an object of the invention, to provide a highly efficient oil removal arrangement for an oil flooded screw compressor.